2022 12 14 FAC MinutesFINANCIAL ADVISORY COMMISSION
SPECIAL MEETING
MINUTES
WEDNESDAY, DECEMBER 14, 2022
CALL TO ORDER
A special meeting of the La Quinta Financial Advisory Commission
(Commission) was called to order at 10:00 a.m. by Chair Mills.
PRESENT: Commissioners Anderson, Batavick, Dorsey, Mast,
Way and Chair Mills
ABSENT: Commissioner Luettjohann
STAFF PRESENT: Finance Director Martinez, Financial Services Analyst Hallick,
Account Technician Batuta, and Management Assistant Delgado
PLEDGE OF ALLEGIANCE
Commissioner Way led the audience in the Pledge of Allegiance.
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA - None
CONFIRMATION OF AGENDA
Staff requested that Study Session Item No. 1 "Discuss Reserve Analysis
Review and Draft Report" be moved up and considered before the Business
Session items.
The Commission concurred.
ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS
- None
CONSENT CALENDAR ITEMS
1. APPROVE MEETING MINUTES DATED NOVEMBER 9, 2022
2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
JUNE 30, 2022
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
SEPTEMBER 30, 2022
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4. RECEIVE AND FILE FIRST QUARTER FISCAL YEAR 2022/23
TREASURY REPORTS FOR JULY, AUGUST, SEPTEMBER 2022
CONSENT CALENDAR ITEM NO. 2 and 3 - discussion
The Commission inquired about the following expenditure listed under the top
five non -general fund expenditures for the Revenue and Expenditure Reports
dated June 30, 2022, and September 30, 2022:
• Visit Greater Palm Springs - Financial Services Analyst Hallick explained
that the City has a joint powers agreement with Visit Greater Palm
Springs and a portion of the City's transient occupancy tax based on a
percentage is expended to them for marketing tourism purposes.
CONSENT CALENDAR ITEM NO .4 - discussion
The Commission inquired about the investments listed on Attachment 1 with
0% earnings. Financial Services Analyst Hallick explained that these are either
investments that have overall return rates (gain/loss) but not interest rates,
or treasury discount notes.
Motion - A motion was made and seconded by Commissioners
Batavick/Dorsey to approve the Consent Calendar as submitted. Motion
passed: yes - 6, noes - 0, abstain - 0, absent - 1 (Luettjohann).
STUDY SESSION > » > taken out of Agenda order
1. DISCUSS RESERVE ANALYSIS REVIEW AND DRAFT REPORT
(REPORT)
Financial Services Analyst Hallick presented the staff report, which is on file in
the Finance Department.
The Commission and staff discussed the City's natural disaster insurance
coverage and related annual premiums; cash flow budget revenues reserves
and unassigned fund balance; the subcommittee's recommendations for the
City to make additional payments towards the City's unfunded pension liability
with California Public Employees Retirement System Agency (CaIPERS);
fluctuations of CaIPERS annualized returns over the years; and the City's
timeframe for routine review of the Reserves Policy. Financial Services Analyst
Hallick explained the difference between levels of pension unfunded liability
and the timeline for taking the unfunded liability payment subcommittee
recommendations to Council for consideration and direction as a study session
item.
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SPECIAL MEETING
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Discussion followed on the Commission's recommendations for changes to the
Report.
BUSINESS SESSION > > > taken out of Agenda order
1. RECEIVE AND FILE THE ANNUAL MEASURE G SALES TAX
OVERSIGHT COMPLIANCE REPORT (REPORT) FOR FISCAL YEAR
2021/22
Finance Director Martinez presented the staff report, which is on file in the
Finance Department.
Finance Director Martinez thanked the subcommittee, which consisted of
Commissioners Batavick and Luettjohann, for their time, recommendations,
and thorough review of the Report.
The subcommittee provided an overview of the Report review process and
thanked all the residents for their continuing support and investment in the
community.
The Commission and staff discussed the use of Measure G unassigned reserves
to prefund the Dune Palms Bridge project to avoid delay of construction that
was approved by Council on February 15, 2022. Staff mentioned the Highway
Bridge Program being oversubscribed and by prefunding this project, the City
will move up on the priority list to be reimbursed by Caltrans. As the project
is completed by phase, the City will request reimbursement of funds
expended.
Motion - A motion was made and seconded by Commissioners Way/Mast to
receive and file the annual Measure G Sales Tax Oversight Compliance Report
for fiscal year 2021/22. Motion passed: yes - 6, noes - 0, abstain - 0, absent
- 1 (Luettjohann).
2. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO
SERVE ON THE FISCAL YEAR 2023/24 GENERAL FUND
OPERATING BUDGET SUBCOMMITTEE
Finance Director Martinez presented the staff report, which is on file in the
Finance Department.
Commissioners Mast and Way expressed their interest to serve on the fiscal
year 2023/24 general fund operating budget subcommittee.
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Motion - A motion was made and seconded by Commissioners
Dorsey/Batavick to appoint Commissioners Mast and Way to serve on the
fiscal year 2023/24 general fund operating budget subcommittee. Motion
passed: yes - 6, noes - 0, abstain - 0, absent - 1 (Luettjohann).
3. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO
FORM A 10-YEAR FINANCIAL PROJECTIONS TASK FORCE
Finance Director Martinez presented the staff report, which is on file in the
Finance Department.
Commissioners Anderson, Batavick, and Dorsey expressed their interest to
serve on the subcommittee to form a 10-year financial projections task force.
Motion - A motion was made and seconded by Commissioners Way/Mast to
appoint Commissioners Anderson, Batavick and Dorsey to serve on the
subcommittee to form a 10-year financial projections task force. Motion
passed: yes - 6, noes - 0, abstain - 0, absent - 1 (Luettjohann).
DEPARTMENTAL REPORTS
All reports are on file in the Finance Department.
1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES
COMMISSIONERS' ITEMS
The Commission discussed changing the Commission regular meeting time
from 4:00 p.m. to an earlier time.
ADJOURNMENT
There being no further business, it was moved and seconded by
Commissioners Dorsey/Anderson to adjourn this meeting at 11:30 a.m.
Motion passed: yes - 6, noes - 0, abstain - 0, absent - 1 (Luettjohann).
Respectfully submitted,
Jessica Delgado, Management Assistant
City of La Quinta, California
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